Stevens' latest newsletter mentioned two major proposed changes that will be coming out in a Fed Register notice "shortly":

Quote:

Update the combination of credit scores and down payment requirements for new borrowers

- New borrowers will now be required to have a minimum credit score of 580 to qualify for maximum financing. New borrowers with less than a 580 credit score will be limited to a 90% loan-to-value ratio.

- This allows FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.

- This change will be posted in the Federal Register shortly and, after a 30-day notice and comment period, would go into effect in the summer.

AND

Quote:

Reduce allowable seller concessions

- FHA borrowers will be limited to 3% seller concessions.

- The current level exposes FHA to excess risk by creating incentives to inflate appraised value. This modification will bring FHA into conformity with industry standards on seller concessions.

- This change will be posted in the Federal Register shortly, and after a 30-day notice and comment period, would go into effect in the summer.

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